Which European stock index is happier after Brexit?
FTSE is outperforming DAX and CAC.
From another angle, FTSE has recovered/retraced nearly 80% of Brexit losses but less than 40% from DAX. This is a three day performance that may or may not be here to stay but it is immediately clear that FTSE is relatively stronger, stock market participants are approaching the German index with more pessimism.
FTSE shows it’s strength after Brexit compared to DAX and CAC. Which one of the following is true? (Choose A/B)
A. Investors are displaying solidarity with the British.
B. Investors are worried about Deutsche Bank’s derivatives exposure.